Consumer Finance Monitor

In this episode of the Consumer Finance Monitor Podcast, we examine one of the most closely watched and increasingly controversial developments in consumer finance: earned wage access (EWA) products. EWA products allow workers to access a portion of wages they have already earned before their scheduled payday. Proponents describe these products as a valuable financial tool that helps consumers manage cash-flow shortfalls without resorting to traditional payday loans. Critics, including the Center for Responsible Lending (CRL), argue that EWA products function as high-cost credit, often involving opaque fees that can trap consumers in cycles of debt. Our panel brings together industry and advocacy perspectives to explore the research, legal arguments, and regulatory uncertainty surrounding EWA, a market that has grown rapidly but remains unevenly regulated. Meet the Speakers · Alan Kaplinsky – Host and moderator. Founder and former Practice Group Leader of Ballard Spahr's Consumer Financial Services Group; now Senior Counsel. · Lucia Constantine – Senior Researcher at the Center for Responsible Lending, focusing on mortgage lending and predatory debt practices. · Yasmin Farahi – Deputy Director of State Policy and Senior Policy Counsel at CRL, specializing in small-dollar lending and state consumer protection initiatives. · Joseph Schuster – Partner in Consumer Financial Services Group at Ballard Spahr, with extensive experience advising on earned wage access products and their legal and regulatory treatment. Key Topics Covered in the Episode · What Is Earned Wage Access? An overview of EWA products, how they operate, and why they have become a focal point for regulators and consumer advocates. · Consumer Protection vs. Industry InnovationCRL presents research suggesting that EWA products operate as high-cost credit and may contribute to debt accumulation, while industry participants argue the products provide needed liquidity and differ fundamentally from traditional loans. · Fees, Tips, and Consumer Understanding A discussion of common pricing models, including expedited access fees and voluntary "tips," and whether consumers fully understand the true cost of using EWA services. · Research Findings CRL reviews studies conducted by it based on anonymized transaction data indicating frequent repeat usage, escalating fees, and increased overdraft activity among some users. · The Regulatory and Legal Landscape An examination of ongoing litigation, divergent state approaches, and federal regulatory ambiguity. While some states regulate EWA as credit, others have carved out exemptions. Courts are increasingly being asked to determine whether EWA products constitute "loans" under existing law. · Industry Responses and SafeguardsDiscussion of non-recourse structures, voluntary fee models, and industry-led efforts to mitigate consumer harm. · Policy Outlook Consideration of congressional interest, state-level reform efforts, and the likelihood of future regulatory intervention. Why This Episode Matters The debate over earned wage access is still in its early stages, but the outcome will have significant implications for fintech providers, employers, consumers, and regulators. This episode provides essential context and analysis for financial services professionals seeking to understand how EWA fits within existing consumer credit frameworks, and how that framework may change. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder and former chair of the firm's Consumer Financial Services Group. We invite you to subscribe on your preferred podcast platform for weekly insights into key developments in consumer financial services law and regulation. Since its recording, there have been a few developments relevant to this episode. For instance, on December 22, 2025, the Consumer Financial Protection Bureau issued an advisory opinion that states the Truth In Lending Act (TILA) does not apply to certain "earned wage access (EWA) products," and it rescinds a proposed interpretive rule issued under former CFPB Director Chopra that classified these products as credit subject to TILA with their fees considered finance charges. The Center for Responsible Lending expressed opposition to this latest advisory opinion. On January 13, 2025, the House Financial Services Committee held a hearing on financial technology that included consideration of draft legislation on "Earned Wage Access," which CRL refers to as "payday loan apps." Around 200 nonprofits have written to Congress about their opposition to the version of this bill as introduced last session of congress.

Join Professor Arthur Wilmarth, a distinguished scholar on banking regulation, along with John Culhane, Jr., Joseph Schuster, and Ronald Vaske, who specialize in consumer financial services. They dive into landmark court cases reshaping National Bank Act preemption, arguing over the implications of the Cantero and Conti decisions. Discussions cover the nuanced analyses required under Dodd-Frank, the growing role of state law, and the strategic adjustments banks must make to navigate these changes. Expect insights into upcoming litigation and the future of compliance in banking!

Terence Grugan, co-chair of Ballard Spahr's AML team, dives into the evolving landscape of anti-money laundering compliance. He discusses recent regulatory streamlining efforts aimed at easing burdens on financial institutions. Terence highlights the emphasis on targeted examinations for community banks and emerging trends in non-bank entities under FinCEN. He also clarifies new SAR reporting guidance and the implications of the GENIUS Act for stablecoins, shedding light on compliance adaptations in the rapidly changing financial world.

This week on the award-winning Consumer Finance Monitor Podcast, host Alan Kaplinsky is joined by Senior Counsel Mark Levin and special guest Professor Mohsen Manesh for a powerful roundtable on one of today's most consequential topics: the SEC's new position on mandatory arbitration in corporate governance documents and how state law and market realities are shaping the future for consumer financial services companies, investors, and legal counsel. Meet the Speakers: Alan Kaplinsky - Host and Senior Counsel at Ballard Spahr's Consumer Financial Services Group, Alan brings decades of expertise in arbitration and class action waivers to the table. Mark Levin - A leading authority on arbitration provisions and regulatory compliance, Mark (now retired) was a seasoned attorney at Ballard Spahr and long-time collaborator with Alan. Mohsen Manesh - The L.L. Stewart Professor of Business Law at the University of Oregon, Mohsen is a nationally recognized legal scholar and co-author of a widely cited NYU Law Review article on shareholder arbitration clauses. In This Episode, the Panel Explores: The SEC's Policy Shift: Why the SEC now allows mandatory arbitration provisions in registration statements, and how the focus has moved to disclosure, not the substance, of arbitration clauses. State Law Challenges: How Delaware's SB 95 (DGCL 115(c)) bans arbitration provisions for federal securities law claims in corporate charters, and the legislative backstory behind this move. Federal vs. State Authority: The panel debates whether states like Delaware can lawfully prohibit shareholder arbitration in corporate charters without being preempted by the Federal Arbitration Act (FAA). Practical Guidance for Issuers: The importance for issuers of providing clear, plain-language disclosures about arbitration clauses and drafting these provisions conservatively while preserving statutory remedies to address current legal and regulatory challenges. Market Realities and Investor Response: Despite ongoing legal debates, public companies thus far have shown little interest in reincorporating elsewhere to enable arbitration provisions, as both shareholder demand for mandatory arbitration and management support for such proposals remain limited. Issuer and Investor Impact: While arbitration can offer faster, more efficient, and confidential dispute resolution and reduce costly class actions, it may also limit options for class-wide remedies and restrict investor recourse. What's Next? With the SEC's new stance and ongoing uncertainty about the interplay with state laws, the landscape for shareholder arbitration is in flux—and this episode breaks down the key issues you need to watch. Whether you're a legal professional, corporate executive, or investor, this episode delivers sharp insight and practical takeaways on regulatory trends that could reshape the field of consumer financial services. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry. Following this episode, Professor Mohsen Manesh released a new article, The Past, Present, and Likely Future of Shareholder Arbitration, which builds directly on the insights he shared on the podcast. The full paper is available here.

Join host Alan Kaplinsky, founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group and one of the foremost thought leaders in the industry, as he welcomes two special guests for a timely and insightful conversation about the most significant deregulatory developments in banking law during 2025. Alan is joined by his Ballard Spahr colleague Scott Coleman, a partner with more than 30 years of experience guiding banks and bank holding companies through mergers, acquisitions, and all facets of regulatory compliance, especially in the community banking sector. They're also joined by Dr. Sean Campbell, Chief Economist and Head of Policy Research at the Financial Services Forum, where he represents the eight U.S. global systemically important banks. Dr. Campbell is a distinguished economist, former senior Federal Reserve official, and published academic. In this episode, Alan, Scott, and Sean break down the latest developments and ongoing trends in bank regulation and supervision, and digital innovation. You'll get expert analysis and practical takeaways on: · The Deregulatory Wave: How the Trump administration's aggressive deregulatory agenda is streamlining exams, reducing supervisory burdens, and shifting the focus toward core financial risk-while eliminating reputational risk as a part of President Trump's Debanking Executive Order. · Supervision and Stress Testing Reform: Why new Federal Reserve proposals to increase transparency in stress testing mark a turning point for large banks, moving away from a "check-the-box" approach to a laser focus on tangible risks like capital, liquidity, and asset quality. · Deposit Insurance Debate: The pros, cons, and historical lessons of raising FDIC insurance limits-especially in the wake of recent bank failures and how the right balance can preserve market discipline. · Community Reinvestment Act in the Digital Age: Why the CRA's geography-based model is due for an overhaul as banking goes mobile and regulatory priorities shift. · Crypto, Stablecoins, and Regulatory Parity: What the Bipartisan Enactment of the GENIUS Act (regulating stablecoins) means for banks and fintechs, and why applying anti-money laundering rules across the board could level the playing field. · Eliminating Reputational Risk: How regulators are eliminating the use of "reputational risk" as a catch-all supervisory and enforcement tool and what this means for fair access and bank governance. · Looking to the Future: The group reflects on what's next for the bank regulatory landscape, Wall Street's view on the industry, and the practical impacts on banks and consumers. Whether you're a banker, regulator, or just want to understand how Washington and Wall Street are shaping the future of finance, this episode delivers the highlights of 2025 and insights you need going into 2026. Tune in for expert opinions, real-world examples, and a roadmap to what's ahead! Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the banking and the consumer finance industry.

Today's episode features Part 2 of our November 4 webinar, "The CFPB's Most Ambitious Regulatory Agenda Ever." (Part 1 of this series was released on December 18. We encourage you to listen to that episode as well). In Part 2, we continue to unpack the far-reaching implications of the Consumer Financial Protection Bureau's (CFPB) regulatory ambitions. The CFPB has published a sweeping agenda that promises to reshape the landscape for consumer financial services, and our panel of seasoned attorneys offers vital context and actionable insights for industry professionals, regulators, and informed consumers alike. Key Topics Discussed: · CFPB's Pre-Rule and Long-Term Actions - What's on the regulatory horizon, including advance notices and rulemaking targets that could reshape consumer finance. · Clarifying "Unfair, Deceptive, and Abusive" Practices - Will the CFPB issue new rules or guidance to define these critical terms? The panel reviews statutory definitions and industry implications. · Identity Theft and Coerced Debt Regulation - Proposed amendments to Regulation V including new protections for survivors of identity theft and economic abuse. · Redefining Large Market Participants - Examination of thresholds for CFPB supervision in areas like auto financing, debt collection, consumer reporting, and international money transfers, aiming to target the largest market players. · Qualified Mortgage Rules & Loan Originator Compensation - What changes might be coming to mortgage rules and compensation methods, especially for small-dollar loans? The industry's wishlist and regulatory challenges are explored. · The Equal Credit Opportunity Act (ECOA) & Disparate Impact - Is the CFPB shifting its stance on disparate impact liability in lending? Hear the latest on the Trump administration's influence and evolving regulatory language. · CFPB's Withdrawal of Guidance Documents- A look at the Bureau's move away from guidance towards formal rulemaking and the impact on regulated entities. · Industry Feedback and Uncertainty - Lively discussion about compliance burdens, regulatory rescissions, and the ongoing uncertainty surrounding the CFPB's future funding and priorities. Meet Your Speakers from Ballard Spahr: · Alan Kaplinsky (Host & Moderator): Senior Counsel and Founder and former leader of Ballard Spahr's Consumer Financial Services Group · Rich Andreano, Jr.: Partner and head of the firm's Mortgage Banking Group · John Culhane, Jr.: Partner in the Consumer Financial Services Group · Kristen Larson: Of Counsel, Consumer Financial Services Group · Daniel Wilkinson: Associate, Consumer Financial Services Group · Rob Lieber: Associate, Consumer Financial Services Group · Aja Finger: Associate, Consumer Financial Services Group Tune in as our expert panel breaks down the complexities, anticipated impacts, and the road ahead under the CFPB's ambitious agenda. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode features Part 1 of our November 4 webinar, "The CFPB's Most Ambitious Regulatory Agenda Ever." In this packed episode, our expert panel breaks down the Consumer Financial Protection Bureau's largest and boldest regulatory agenda to date. Discussing an unprecedented lineup of 24 rulemaking items that could reshape the consumer financial services industry. What's Included: Unprecedented Regulatory Activity: We unpack why this semi-annual agenda stands out, the record number of proposed rules, and what this means for financial institutions, FinTechs, and consumers alike. Hot Topics Covered: From sweeping changes in mortgage servicing to open banking (1033 of Dodd-Frank/personal financial data rights), small business lending rules (1071 of Dodd-Frank), and the rollout of the Financial Data Transparency Act, we cover all the major initiatives and legal battles on the horizon. Industry Insight: Hear why certain rules are stirring up controversy, what compliance challenges lie ahead, and how litigation and funding woes at the CFPB might impact the pace of change. Practical Impact: Learn about technical corrections in remittance transfer rules, new standards for data sharing, and what these changes mean for day-to-day business operations. Meet Your Speakers from Ballard Spahr: Alan Kaplinsky (Host & Moderator): Senior Counsel, founder and former leader of Ballard Spahr's Consumer Financial Services Group Richard Andreano, Jr.: Partner and head of the firm's Mortgage Banking Group John Culhane, Jr.: Partner in the Consumer Financial Services Group Greg Szewczyk: Chair of the firm's Privacy and Data Security Group Mudasar Pham-Khan: Associate, Consumer Financial Services Group Kristen Larson: Of Counsel, Consumer Financial Services Group Daniel Wilkinson: Associate, Consumer Financial Services Group Robert Lieber: Associate, Consumer Financial Services Group Aja Finger: Associate, Consumer Financial Services Group Tune in for strategic insights and practical tips to help you prepare for the CFPB's evolving rulebook. Whether you're a compliance leader, financial executive, or simply interested in how Washington's boldest moves will impact your world, this episode is your essential guide to what's next in consumer financial services. Don't miss Part 2, coming next week with even more updates and expert perspectives! Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's podcast brings listeners a timely and insightful discussion as our panel examines the CFPB's proposed amendments to Regulation B under the Equal Credit Opportunity Act (ECOA). As our regular listeners know, we released an episode yesterday, and we are providing this additional special episode in light of a development we consider both time-sensitive and exceptionally important. The discussion is hosted by Alan Kaplinsky, Senior Counsel, founder and former chair for 25 years of Ballard Spahr's Consumer Financial Services Group, and features these distinguished experts in the field: · Bradley Blower, Founder of Inclusive Partners LLC. · John Culhane, Jr., Senior Partner and charter member of Ballard Spahr's fair lending team. · Richard Andreano, Jr., Practice Group Leader for Ballard Spahr's Mortgage Banking Group and the head of Ballard Spahr's fair lending team. Together, the panel takes listeners through the sweeping changes proposed to Reg B, including the elimination of the longstanding disparate impact provisions, significant revisions to discouragement standards, and new limitations on special purpose credit programs for for-profit entities. The conversation covers the legal and political motivations behind the proposal, references to recent Supreme Court decisions, and the implications for lenders, regulators, and consumers. The group also addresses the unusually short 30-day comment period and speculates on why the CFPB may be moving quickly to finalize the rule. Tune in for expert analysis, must-know takeaways, and predictions about industry impact and possible legal challenges. This episode is essential listening for anyone invested in the future of consumer financial services and fair lending. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode features Part 2 of our October 30, 2025 webinar, "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out." In this installment, our panel dives deeper into the evolving intersection of artificial intelligence, regulation, and innovation in financial services. Moderated by Alan Kaplinsky, Senior Counsel, founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group, and Greg Szewczyk, chair of the firm's Privacy and Data Security Group, the discussion cuts through hype and uncertainty to provide clear, practical insights. Alan and Greg lead a lively discussion exploring the practical and policy-driven challenges posed by AI, particularly how existing legal frameworks often struggle to keep pace with rapid technological advancement. Our panel includes: Charley Brown, leader of Ballard Spahr's technology and patents teams, who explains how institutions can protect and capitalize on AI-enabled technologies; Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan, who provides a rare inside look at the policy landscape; Kristian Stout, Director of Innovation Policy at the International Center for Law and Economics, who examines the intersections of AI, regulation, and competition; and Charlie Bullock, Senior Research Fellow at the Institute for Law and AI, who outlines practical frameworks for responsible, compliant AI governance. Throughout the episode, the panel addresses crucial topics including privacy challenges, explainability requirements for AI-driven decisions, and the potential for AI to level the playing field for smaller institutions. Whether you're in the C-suite, a compliance officer, or simply interested in how Washington's decisions shape the future of finance, this episode delivers a clear-eyed look at what the White House action plan covers and what crucial issues still need attention. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder of the firm's Consumer Financial Services Group. We encourage listeners to subscribe on their preferred podcast platform for weekly insights into the consumer finance industry.

Today's episode features Part 1 of our October 30, 2025 webinar, "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out." In this installment, a panel of leading experts breaks down the rapidly evolving role of artificial intelligence in financial services—from foundational concepts to the latest regulatory developments. Moderated by Alan Kaplinsky, Senior Counsel, founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group, and Greg Szewczyk, chair of the firm's Privacy and Data Security Group, the discussion cuts through hype and uncertainty to provide clear, practical insights. Alan and Greg guide an energetic conversation about how AI has become a strategic priority for banks, credit unions, payments companies, and fintechs. Our panel includes: Charley Brown, leader of Ballard Spahr's technology and patents teams, who explains how institutions can protect and capitalize on AI-enabled technologies; Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan, who provides a rare inside look at the policy landscape; Kristian Stout, Director of Innovation Policy at the International Center for Law and Economics, who examines the intersections of AI, regulation, and competition; and Charlie Bullock, Senior Research Fellow at the Institute for Law and AI, who outlines practical frameworks for responsible, compliant AI governance. Together, they unpack the complex patchwork of state, federal, and international rules now shaping AI deployment in financial services. The discussion highlights how automated decision-making laws, privacy requirements, and emerging definitions of "artificial intelligence" are forcing institutions to rethink compliance programs, manage risk differently, and anticipate new regulatory expectations. You'll also hear real-world examples of how organizations are grappling with these challenges in practice. This episode provides an essential foundation for understanding where AI and financial services intersect, and where the regulatory environment is headed. Be sure to tune in next Thursday for Part 2, where our experts delve even deeper into the future of AI, innovation, and legal risk in the financial sector. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder of the firm's Consumer Financial Services Group. We encourage listeners to subscribe on their preferred podcast platform for weekly insights into the consumer finance industry.